These points are also crucial. Why is governance the best business environment? In addition to a convenient environment for handling affairs, market entities, and business operations

Release time:Apr 13, 2024 22:23 PM

What various market entities most hope for is equal legal protection.

What is a business environment? Article 2 of the State Council's "Regulations on Optimizing the Business Environment" states that the business environment refers to the institutional and mechanistic factors and conditions involved by enterprises and other market entities in market economic activities. Currently, some scholars and practical experts limit the business environment to the convenience of doing business. Therefore, it is necessary to explore the complete meaning of the proposition that the rule of law is the best business environment.


1. the rule of law can best meet the needs of market subjects for freedom



Free business is the way of survival and development of businessmen. Freedom can be divided into positive freedom and negative freedom, the former refers to the individual's freedom to do what, the latter refers to the individual's freedom from external interference.

In order to ensure the active freedom of citizens, modern rule of law stipulates the principle of freedom for all who are not prohibited by law. According to Article 5, Paragraph 3 of China's Administrative Penalty Law, the provision for imposing administrative penalties on illegal acts must be made public; According to Article 3 of the Criminal Law of our country, if there is no explicit provision in the law that it is a criminal act, it shall not be convicted or punished. People have summarized the rule of law principle of "freedom is not prohibited by law". Law, with its openness and predictability, enables people to know what can be done and what cannot be done, thus obtaining the freedom protected by law.

In addition to positive freedom, citizens also have negative freedoms that are not illegally violated. As stipulated in Article 37 of the Constitution of our country, the personal freedom of citizens shall not be violated; Article 38 stipulates that the personal dignity of citizens shall not be infringed upon; Article 39 stipulates that the residence of citizens shall not be infringed upon. In short, freedom is the greatest gift that the rule of law brings to the business environment.


2. the rule of law can best meet the needs of market players for equality



Marx said that commodities are inherently egalitarian. The WTO stipulates the principle of national treatment, the basic meaning of which is that foreigners enjoy no less treatment than natives in terms of legal status, litigation procedures and investment, so as to eliminate the discriminatory treatment given to foreigners in trade in goods, services, investment and intellectual property rights.

According to the Civil Code of our country, the state implements a socialist market economy and guarantees the equal legal status and development rights of all market entities. According to Article 6, Paragraph 2 of the State Council's Regulations on Optimizing the Business Environment, the state treats all types of market entities such as domestic enterprises and foreign-invested enterprises equally.


3. the rule of law can best meet the needs of market players for fair competition



The principle of fair competition is a basic principle of WTO, which is embodied in the agreements and agreements of WTO. It means that members should avoid taking measures to distort market competition, correct unfair trade practices, and create and maintain an open, fair and just market environment in the fields of trade in goods, trade in services and trade-related intellectual property rights.

The principle of fair competition includes three key points: firstly, it applies to the fields of goods trade, services trade, and trade-related intellectual property. Secondly, this principle constrains both the government actions of member states and the corporate actions of member states. Thirdly, this principle requires members to maintain fair competition among product, service or service providers in their domestic market, regardless of whether they come from their own country or any other member.

China has also formulated the Anti Unfair Competition Law to promote the healthy development of the market economy, encourage and protect fair competition, stop unfair competition behavior, and protect the legitimate rights and interests of operators and consumers, as well as the Anti Monopoly Law to prevent and stop monopolistic behavior, protect fair competition in the market, improve economic efficiency, safeguard consumer interests and social public interests, and promote the healthy development of the market economy.

Article 21 of the State Council's "Regulations on Optimizing the Business Environment" stipulates that relevant government departments should increase their enforcement efforts against monopoly and unfair competition, effectively prevent and stop monopolistic behavior, unfair competition behavior, and abuse of administrative power to exclude or restrict competition in market economic activities, and create a fair competition market environment.


4. the rule of law can best meet the needs of market subjects for personal and property safety.



The main body of the market has property, so the demand for safety is relatively strong. The purpose of modern rule of law is to protect human rights. China has formed a sound legal system to protect citizens' personal and property safety.

Article 11, Paragraph 2 of the Constitution of our country stipulates that the state protects the legitimate rights and interests of non-public sectors such as the individual economy and private economy. Article 13 stipulates that the legitimate private property of citizens shall not be infringed upon. Article 207 of the Civil Code stipulates that the property rights of the state, collectives, and individuals, as well as the property rights of other rights holders, are equally protected by law, and no organization or individual may infringe upon them. Article 5, Paragraph 2 of the Law on Public Security Administration Punishments stipulates that the implementation of public security administration penalties shall be open, fair, respect and protect human rights, and protect the personal dignity of citizens. Article 2 of the Criminal Law stipulates that one of the tasks of China's Criminal Law is to protect state-owned property and collectively owned property of the working masses, protect privately owned property of citizens, and protect the personal rights, democratic rights, and other rights of citizens. Article 2 of the Criminal Procedure Law stipulates that one of the tasks of the Criminal Procedure Law is to respect and protect human rights, protect the personal rights, property rights, democratic rights, and other rights of citizens; Article 12 stipulates that no one shall be convicted without a lawful judgment by the people's court.


5. the rule of law can best meet the needs of market players for convenience.



Market players require convenience in order to avoid missing business opportunities. Article 27 of China's Constitution stipulates that all state organs shall implement the principle of streamlining, implement a work responsibility system, constantly improve the quality and efficiency of their work, and oppose bureaucracy.

Article 3 of the State Council's "Regulations on Optimizing the Business Environment" stipulates that the state minimizes the direct allocation of market resources by the government, minimizes direct intervention by the government in market activities, strengthens and regulates in-process and post event supervision, and effectively reduces institutional transaction costs; Article 19 stipulates that the state shall promote the reform of "separation of certificates and licenses", continuously streamline matters related to enterprise business licenses, and adopt methods such as directly canceling approvals, changing approvals to filing, implementing notification commitments, and optimizing approval services in accordance with the law. All matters related to enterprise business licenses shall be classified and managed, providing convenience for enterprises to carry out relevant business activities after obtaining a business license; Article 35 stipulates that the government and its relevant departments shall promote the standardization of government services, prepare and publicly disclose the standardized workflow and guidelines for government service matters in accordance with the requirements of reducing links, materials, and time limits, refine and quantify government service standards, compress discretionary power, and promote the implementation of equal acceptance and standard handling for the same matter. Without legal, regulatory, and regulatory basis, it is not allowed to add conditions and links for handling government service matters.

Why do the above five points use the word "most capable"? It is because they are all clear provisions of the law, backed by strong intervention from the state. And other means lack this.

In short, the rule of law is the best business environment, not only because some people understand that the rule of law can make things convenient, but also because the rule of law is a comprehensive system that guarantees the rights of market entities to do business; It is not just a matter of the government, but also a matter of everyone that requires the joint efforts of various government agencies. Only in this way can we create a business environment where state-owned enterprises dare to do business, private enterprises dare to venture, and foreign enterprises dare to invest.

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